EURUSD BREAKS BELOW KEY SUPPORT AS USD STRENGTH CONTINUES

American stocks were relatively mixed on Friday as investors reflected on the latest American producer price index. According to the Bureau of Labor Statistics (BLS), the headline PPI declined from 11.5% to 11.0% on a year-on-year basis. On a MoM basis, the PPI declined from 1.6% to 0.5%. In the same period, the core PPI dropped from 9.6% to 8.8%. These numbers provide further evidence that the country’s inflation may have peaked. Still, analysts believe that the Fed will likely continue with its aggressive tightening process.

The price of European natural gas continued its bullish trend as the situation in Ukraine continued. The current catalyst for the uptrend was the decision by Russia to sanction some European gas companies. For example, it sanctioned Gazprom Europe, a company that Germany repossessed when the war broke out. Meanwhile, the price of crude oil rose slightly as Russian output declined because of the rising sanctions on the country. It lost 900k barrels a day in April. Analysts expect that the country will lose over 600k barrels day this month.

Cryptocurrency prices continued their volatility as investors continued to focus on stablecoins. Earlier this week, Terra USD lost its peg, leading to the collapse of LUNA, which was a top-ten cryptocurrency. At the same time, concerns about Tether continue as the coin moved slightly below $1. Further concerns grew after Tether’s CTO refused to provide details about its holdings. In a statement to FT, he refused to provide details about which organizations that provide its custody services and the treasuries that it holds. Bitcoin briefly dropped below $25,000.

XNGUSD

The XNGUSD pair rose to a high of 7.74, which was slightly above this month’s low of 6.27. It has moved below the 25-day moving average while the MACD and the DeMarker indicator has moved below the neutral levels. It is also slightly below the important resistance level at 8.20, which was the highest level in April. Therefore, the pair will likely keep rising as bulls target the important level at 8.20.

EURUSD

The EURUSD pair crashed to a low of 1.0370 as the dollar strength continued. The pair moved along the lower line of the Bollinger Bands. The width of the three lines have widened. Further, the pair has moved below the important support at 1.0480, which was the lower side of the bearish flag pattern. The Relative Strength Index (RSI) has moved below the oversold level. Therefore, the pair will likely keep falling in the near term.

USDCAD

The USDCAD pair jumped sharply as the US dollar rallied. It rose to a high of 1.3050, which is significantly higher than this week’s low of 1.2912. It has moved along the upper side of the Bollinger Bands. The Stochastic Oscillator has moved above the overbought level. The Relative Strength Index has moved close to the overbought level. Therefore, the pair will likely keep rising.